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Waterfall Analysis: See Where Your Sales Pipeline is Leaking

Updated: Jul 18

Sales performance often feels like a black box: deals go in, some come out as wins, and others vanish without a clear reason why. You might know your total revenue or average deal size, but how often do you pinpoint exactly where deals fall apart?


If you're serious about building a predictable, scalable sales engine, then understanding your sales pipeline behavior stage-by-stage is essential.


That's where Waterfall Analysis comes in. And with our latest CRM As A Service Power BI report, getting that insight has never been easier.


Waterfall Analysis

The Problem: Where Do Sales Opportunities Go?

Sales managers and reps alike often ask:

  • Why do deals stall at certain stages?

  • Which stage sees the biggest drop-offs?

  • Are we actually progressing deals or just hoping they move?

Traditional CRM systems offer only fragments of this story. You see current pipeline stages or deal age, but not where things went wrong. That lack of visibility means lost revenue, missed targets, and unpredictable forecasts.


The Solution: Waterfall Analysis for Pipeline Visibility

Waterfall analysis is a simple, powerful way to visualize how deals move through your sales pipeline or fail to.


1. Pipeline Retention Rate

Pipeline Retention

This shows you how many deals survive each stage of the pipeline, starting from 100% at the first stage.


Example:

  • 100 opportunities start.

  • 60 make it to “Proposal” → 60% retention.

  • 30 make it to “Negotiation” → 50% drop from previous stage.



2. Drop-Off Rate

Drop-Off Rate

While retention shows what you kept, drop-off shows what you lost and when.


Example:

  • 25% drop-off after “Qualification”? That might mean poor-fit leads.

  • 40% drop-off at “Negotiation”? Maybe pricing or unclear proposals.


By pinpointing where most deals disappear, this visual allows your team to investigate root causes and take focused action, be it better qualification, more compelling offers, or improved follow-up strategies.


Business Impact: From Reactive to Proactive Sales

Waterfall visuals aren’t just pretty charts they’re tools for better decision-making.


For Sales Managers

It becomes a vital coaching and operational tool. Instead of flying blind, managers gain the clarity to improve pipeline accuracy, coach reps based on specific stage performance, and address systemic issues that may be stalling opportunities across the board.


For Executives

the analysis provides a high-level view of where revenue is leaking from the pipeline. With this data in hand, leaders can forecast more confidently and justify targeted investments in tools, training, or process improvements that align with business goals.


For Sales Reps

Waterfall Analysis offers a clearer understanding of where and why deals fall off, enabling them to adjust their tactics and messaging at each stage of the pipeline. This stage-by-stage insight helps them improve their win rates by working smarter, not harder.


Take Control of Your Sales Process

Your sales data has a story and with Waterfall Analysis in CRM As A Service, you can finally understand it and take meaningful action.


This feature helps you visualize exactly where deals drop off in the pipeline, diagnose issues at each stage, and uncover patterns that may be slowing down your sales process. With this clarity, you can optimize your strategy, focus your team’s efforts where they matter most, and turn pipeline leaks into growth opportunities.


Ready to take the guesswork out of sales?


Try the interactive Power BI report and start turning sales data into action.



TeamsWork is a Microsoft Partner Network member, and their expertise lies in developing Productivity Apps that harness the power of the Microsoft Teams platform and its dynamic ecosystem. Their SaaS products, including CRM As A Service, Ticketing As A Service and Checklist As A Service, are highly acclaimed by users. Users love the user-friendly interface, seamless integration with Microsoft Teams, and affordable pricing plans. They take pride in developing innovative software solutions that enhance company productivity while being affordable for any budget.


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